Seagate’s Business With Huawei Led to Investor Losses, Suit Says

Seagate Technology Holdings PLC delivered hard disk drives to Huawei Technologies Co. despite a US government ban on exports to the Chinese company, failed to disclose that information, and demurred when asked, an investor alleges.

The resulting $300 million penalty and multi-year audit requirement caused the company’s stock value to drop, according to a proposed class action filed Monday by a plumbers and pipefitters pension fund at the US District Court for the Northern District of California.

The fine, announced in April, has been seen as a sign of the increasing importance of export controls to US foreign policy, including ...